Government set to target Enterprise Zone growth with new fund
THE Government is set to launch a new £60m infrastructure fund aimed at boosting schemes within the UK’s network of Enterprise Zones.
The surprise announcement follows the Chancellor’s visit to Birmingham on Friday when he backed the city’s new EZ prospectus.
Reports suggest the funding could also be a response to Lord Heseltine’s No Stone Unturned report which recommends devolving more power to the regions so they can determine their own economic destiny.
Lord Heseltine was also in Birmingham for the Chancellor’s visit and he is currently helping the city develop a pilot project on how the recommendations contained within his report could be rolled out nationally.
The new fund, which could be launched by Local Government Secretary Eric Pickles today, is expected to see the UK’s 24 EZs bid for finance to support infrastructure projects which can kick-start job creation schemes.
As well as Birmingham, the Midlands has been designated several other EZs including the Black Country, Hereford and the MIRA automotive research facility.
The reports over the weekend suggest the money will be awarded on a first-come first-served basis and the fund is designed to overcome what Mr Osborne described in Birmingham as a London-centric economic focus.
George Gillespie, MIRA Chief Executive Officer, said: “We welcome today’s announcement to make £60m of investment available for key EZ infrastructure and are delighted to see that the Government is supporting MIRA’s vision as the UK centre of excellence in transport R&D.
“MIRA has self-invested more than £7.5m so far in jobs growth, however with additional support now available for key EZs, we are confident that we can accelerate major aspects of the development by several years, bringing forward approximately 250 jobs in the next two to three years.”
The technology park has pledged to create 2,000 jobs over the coming 10 years and is currently ahead of schedule.
In addition, it has also attracted eight businesses to the region – including a number of high-profile international businesses such as Lockheed Martin, Bosch Engineering, Ashok Leyland and Norgren.
Enterprise Zones will benefit from:
• A 100% business rate discount worth up to £275,000 over a five year period, for businesses that move into an Enterprise Zone during the course of this Parliament;
• All business rates growth within the zone for a period of at least 25 years will be retained and shared by the local authorities in the LEP area to support their economic priorities;
• Government and local authority help to develop radically simplified planning approaches in the zone; and
• Government support to ensure superfast broadband is rolled out in the zone. This will be achieved through guaranteeing the most supportive environment and, if necessary, public funding.
